Thanks alot Rastro, your solution did help.
I kinda did it a bit different though. I had DigitalPersona already installed using 'sp43883' and 'sp45217' (both from HP support website). You can just google them.
So after I couldn't get that red 'x' over the DigitalPersona taskbar icon to leave, I downloaded the 'sp39199' and installed it... still no luck when I restarted. So I then went to device manager, found my fingerprint device, then uninstalled AND deleted the driver
that was installed. I think it was Authentec 2501A or somethin. I restared my computer and it worked!! But the sp39199 did the trick I think. It was just a matter of uninstalling the previous driver first and then restarting.
I then had the option to enroll my fingerprints and it no longer said 'device not detected' or 'detecting reader' before startup. I know this may not have been the best way to do it, but this way worked for me 100% after a whole day of frustration.